The title "School Finance Officer" shall be used herein to designate the position responsible for handling the School Activity Funds.

The Regulations of the State Board of Education define school activity funds as all funds received from extracurricular school activities, such as entertainment, athletic contests, club dues, school fund-raising, etc., and from any activities of the school involving personnel, students, or property. The school or students engage in various activities to raise funds for school use; these funds are known as activity funds. The Arlington Public Schools follow uniform procedures for handling, recording, reporting and accounting for school activity funds. All transactions shall be recorded promptly. The current method of accounting for School Activity Funds is Manatee Accounting Software produced by Manatee Development Corporation of Boca, Inc. In addition to the forms and procedures prescribed for use with Manatee Accounting Software, Arlington Public Schools uses the following forms prescribed by the Department of Education, Commonwealth of Virginia. Form # S-52-ED S-53-ED S-54-ED S-56-ED Description Activity Receipt (book of 25 individual receipts) Activity Funds Receipt (book of 200 receipts, 4 per page) Report of Ticket Sales Daily Report of Cash Collections (used to report cafeteria receipts) School Activity Funds will be maintained on a fiscal year basis (July 1 through June 30) with all accounts closed by June 30. The closing account balances will be carried forward to the next fiscal year. Upon closing of a school, the remaining fund assets (after liquidation of all liabilities) will be distributed on a pro rata basis to schools to which students are assigned from the closing school. The principal will notify the Director, Finance when the Activity Fund is closed so that a final audit may be performed. The title "School Finance Officer" shall be used herein to designate the position responsible for handling the School Activity Funds. Procedures Cash Control 1. All School Activity Funds will be deposited with a bank that carries deposit insurance coverage with the Federal Deposit Insurance Corporation or equivalent agency. The Employer Identification Number to be used by principals on school bank accounts is 54-6001128. "Arlington Public Schools" must be listed above (before) the school name on all bank accounts. 2. Each school may establish only one checking account for School Activity Funds. The checking account will be titled in the name of Arlington Public Schools and the specific Approved-October 4, 2007 Effective-October 4, 2007 Page 1 of 9

school, and the primary signatory will be the principal. The school principal should designate another administrator or lead teacher as alternate signatory or co-signer on bank accounts and for purposes of approving expenditures, contracts, etc. in the principal's absence. The school finance officer responsible for maintaining School Activity Fund records may not be designated as alternate signatory or co-signer. 3. Savings accounts should be established or certificates of deposit purchased when the balance in the school's checking account is in excess of known current needs. 4. All monies received or collected by teachers, staff members, students or others will be given to the school finance officer before the close of school on the day of collection. By the end of that same day, the school finance officer shall provide a written receipt to each person who gave him or her money to deposit. 5. All monies received or collected by the school finance officer will be deposited intact with a bank on the day it is received or collected. The principal will arrange for night deposit service when money is collected after banking hours or on holidays. Money will not be taken home or kept in a school building overnight unless specifically authorized by the Assistant Superintendent, Finance and Management Services. 6. School checks will be pre-numbered. 7. Prior to issuance of checks, the principal will assure that the checking account contains sufficient funds to cover checks being issued. The checking account balance will be kept current for this purpose and for bank statement reconciliation. 8. All expenditures will be approved by the principal as indicated by his or her initials on the invoice or other supporting documentation, or on the preprinted check stub that is attached to the supporting documentation. 9. Losses or theft of school activity funds shall be reported to the Assistant Superintendent, Finance and Management Services and shall be handled in accordance with Policy 25- Reporting Serious Incidents. A written detailed account of the circumstances and of the amount of money involved shall be filed with the School Activity Fund records and with the financial analyst in charge of coordinating school activity funds audits. The Assistant Superintendent, Finance and Management Services will determine action to be taken regarding lost funds. 10. Principals will act promptly to recover funds on checks returned by the bank for reasons including but not limited to insufficient funds, account closed, invalid account number, payment stopped, or referral to maker. An account entitled "Suspense / Returned Checks" is to be maintained in the fund ledger and will be charged with each returned check and returned check fee charged by the bank. Additional information about returned check procedures may be found in Policy 40-Returned Checks and the corresponding PIM. Approved-October 4, 2007 Effective-October 4, 2007 Page 2 of 9

Accounting and Control of School Board Revenues Generated at School Building Level Food Services Each day the cafeteria manager or designee will prepare the Daily Report of Cash Collections (Form S-56-ED) in duplicate and will deliver the cafeteria receipts and form to the school finance officer. The school finance officer will count the money in the presence of the cafeteria manager or designee. If the amount of money agrees with the amount stated on the report, the school finance officer will sign the report, keep the original, return the duplicate to the cafeteria manager and issue him or her a receipt. The cafeteria manager will forward the duplicate Daily Report of Cash Collections to the Food Services Office. The school finance officer will deposit cafeteria money daily. At the end of each week, the school finance officer will prepare a check payable to Arlington Public Schools for the total amount collected for the week and will forward it to the Finance Department with the original Daily Report of Cash Collections. The school finance officer will record amounts received and amounts disbursed in Manatee Accounting Software, in the school activity fund designated "Cafeteria". (#3 0312.00) Use of School Facilities The policy, procedures and fee schedules governing use of school facilities may be found in Policy 40-Use of School Facilities and the corresponding PIM. The requesting organization will contact the facilities use coordinator for the building desired and will complete an "Application for Use of School Facilities". (Form 07-08040) The building administrator will indicate approval action and applicable rental, custodial and other fees on the form. All fees must be paid in advance, by check or money order made payable to the facility being rented. The school finance officer will issue a receipt to the renter for amounts paid. At the end of each month, the school finance officer will prepare a check payable to Arlington Public Schools for 80 percent of room rental fees and 100 percent of custodial, maintenance and police supervision fees. The facility used will retain 20 percent of room rental fees. The school finance officer will record amounts received and amounts disbursed in Manatee Accounting Software, in the school activity fund designated "Building Rentals". (#3 0308.00) Rental of Musical Instruments Instrumental music teachers will require renters of musical instruments to complete the Music Instrument Agreement (Form 07-09035) in duplicate. The Agreement shall be signed by both the student and a parent or guardian. The original form should be returned to the teacher, accompanied by the rental fee, before the instrument is taken from the school building. A copy of the Agreement should be retained by the parent or guardian. Rental fees shall be paid by check or money order made payable to the school and shall be given to the school finance officer on the day of collection, along with a copy of each Music Instrument Agreement. The school finance officer will count the money and be certain that it agrees with the amounts listed on the Agreements submitted by the teacher. If the amounts agree, then the school finance officer will Approved-October 4, 2007 Effective-October 4, 2007 Page 3 of 9

issue a receipt to the instrumental music teacher. At the end of each month, the school finance officer will prepare a check payable to Arlington Public Schools for the total amount collected and will forward it to the Finance Department with a note to deposit it in the central account for Musical Instrument Rentals. The school finance officer will record amounts received and amounts disbursed in Manatee Accounting Software, in the school activity fund designated "Musical Instrument Rentals". (#3 0324.00) Nonresident Student Tuition The policy and procedures regarding nonresident students may be found in Policy 25- Nonresident Students: Admission and Tuition. The fee schedule may be found in PIM 40- Tuition Rates. The school principal is responsible for reporting nonresident students to the Assistant Superintendent, Student Services and for assisting in the collection of tuition if requested to do so. Nonresident student tuition is normally collected from the student's parent, legal guardian or responsible agency directly by the Finance Department. Payment of tuition shall be made by check or money order made payable to Arlington Public Schools and shall be forwarded to the Finance Department. Summer School Tuition The school principal shall designate a Summer School Registrar to receive and process registrations and payments. Payment of Summer School tuition shall be made by check or money order made payable to Arlington Public Schools and shall be forwarded to the Summer School Program Office daily. Payment information for each student being registered shall be listed on a Summer School Tuition Transmittal Form, which shall accompany the checks and money orders that are forwarded. Specific instructions are published annually, including tuition fee schedules and detailed procedures for fee collection and refunds. Adult Education Tuition Payment of tuition shall be by cash, check, money order or credit card made payable to the Adult Education Program. Staff of the Adult Education Office shall issue a receipt to each person or organization that pays tuition and shall deposit the money daily. At the end of each month, the school finance officer will prepare a check payable to Arlington Public Schools for the total amount of tuition collected, net of refunds. Tuition fee schedules are published in Adult Education Program brochures. The school finance officer will record amounts received and amounts disbursed in Manatee Accounting Software, in the school activity fund designated "Tuition" (#3 0340.00) and its associated accounts. Approved-October 4, 2007 Effective-October 4, 2007 Page 4 of 9

Montessori and Preschool Tuition Payment of tuition shall be by check or money order made payable to Arlington Public Schools and shall be forwarded to the Finance Office daily. Local school personnel will issue a receipt to the individual paying tuition, using either State Form S-53-ED "Activity Funds Receipt" or Manatee Accounting Software (in a data file that is separate from the regular Activity Funds). If form S-53-ED is used, the second (yellow) copy of it shall be forwarded to the Finance Department along with the tuition payment. If Manatee Accounting Software is used, either a duplicate copy of the receipt or a copy of the Cash Receipts Register shall be forwarded to the Finance Department along with the tuition payment. Tuition fee schedules are published in the Policy Implementation Manual and are updated annually. Telephone Tolls Use of school system telephones for long distance personal calls or telegrams is prohibited. If an APS employee violates this regulation, the principal, department administrator or designee will be responsible for collecting the toll from that individual. Telephone tolls shall be forwarded to the Finance Department promptly, along with a note communicating the purpose of the payment(s). Vocational, Industrial and Career Education Revolving Accounts Policy and procedures for the operation of such accounts are included in this PIM. Accounting and Control of School Activity Funds General School Activity Funds are to be used in accordance with the purpose for which such funds are collected. Fundraising projects shall, in general, contribute to the educational experience of the students and shall not conflict with the instructional program. Funds derived from the student body as a whole shall be expended to benefit the student body as a whole, either directly or indirectly. The management of student activity funds shall be in accordance with the best business practices and accounting procedures. Receipts and expenditures of money in connection with athletic events, school plays, etc., must be kept in a separate activity fund account for each sport, club or activity. The primary account structure is established by staff of the Finance Department. Policy and procedures related to the schools' acceptance of gifts is contained in Policy 40- Gifts to Schools. Approved-October 4, 2007 Effective-October 4, 2007 Page 5 of 9

No less than once a month, the principal should review the cash position of the School Activity Funds. Periodically, excess funds in the checking account should be transferred to a savings account or be used to purchase a certificate of deposit. Receipts The school finance officer shall prepare a receipt from Manatee Accounting Software each time money is collected. The original receipt is given to the payer and a duplicate copy is retained by the school finance officer and kept in numerical order for audit purposes. Receipts may not be altered after they have been printed. Voided receipts will have "Void" written on their faces and will be kept in sequence with the file copies of the valid receipts. State Form S-52-ED "Activity Receipt" may be used by faculty, staff, students or others when money is collected from students, such as for examination fees, field trips or for lost and damaged textbooks. The receipt form should be completed in its entirety. The original is given to the payer and the duplicate remains in the receipt book, which shall be turned over to the school finance officer when the activity has ended, but in no case later than the end of that school year. Receipts may not be altered after-the-fact. Voided receipts will have "Void" written on their faces and both copies will remain in the receipt book. A gang receipt may be used as an alternative to Form S-52-ED. The gang receipt should include a place for the name of the class or activity, the date, names of the students and payers, and amounts paid. The original receipt shall be given to the school finance officer along with the money collected and a copy should be retained by the class teacher or activity sponsor. A copy of the gang receipt with the appropriate name circled or highlighted may be given to an individual payer who wishes to have a written receipt. All monies received or collected by faculty, staff, students or others will be given to the school finance officer before the close of school on the day of collection. Disbursements All disbursements from school activity funds will be made by check to maintain adequate control over cash and provide an audit trail. This precludes the possibility of making disbursements from cash receipts, establishing petty cash funds, or using debit cards. Disbursements will be supported by an original invoice (not a vendor statement), handwritten receipt, or cash register tape, or a completed contract, prepaid order form or registration form. In all cases, supporting documentation must identify the specific items purchased. Prior to disbursing funds, the school finance officer will ascertain that the payment amount requested is accurate, that the supplies or services have been received in acceptable condition, and that Virginia Retail Sales and Use Tax has been applied to purchases when required. Policy and procedures relating to payment of Virginia Retail Sales and Use Tax may be found in Policy 40. Approved-October 4, 2007 Effective-October 4, 2007 Page 6 of 9

Disbursements will be approved by the principal as indicated by his or her initials on the invoice or other supporting documentation, or on the preprinted check stub that is attached to the supporting documentation. It is recommended that faculty, staff and others be required to obtain the principal's prior written permission to obligate school activity funds. APS Form 07-14014 "School Activity Funds Purchase Order" may be used for that purpose. The principal should define what may be purchased, how much money may be spent, and from which account the expense should be paid. School Activity Funds may be used to make certain purchases in accordance with Policy 40- Small Purchase Procedures for Supplies and be reimbursed from School Board (central) accounts. The principal will assure that only purchases authorized by the policy are made and that appropriate supporting documentation is provided with the request for reimbursement. It is recommended, but not mandatory, that faculty and staff obtain separate receipts for personal purchases and APS-related purchases. Payments to individuals for services rendered, such as babysitting, storytelling, or choreographing movement should be routed through the Finance Department using the procedure established for paying consultants. The school principal will authorize payment for services using APS Form 07-07691 and will either provide an account number to be charged, or will send with the form a check from school activity funds. The check will be made payable to Arlington Public Schools. Finance Staff will deposit it and prepare a check payable to the individual who provided the service. Finance Staff will track individual earnings on a calendar-year basis and will submit Forms 1099 to IRS as required by law. Reports and Audits Monthly Financial Reports Each month the school principal and finance officer will submit two reports to the Finance Department. Both reports are produced from Manatee Accounting Software and are due in Finance on the twentieth day of the succeeding month. Along with the reports, the school finance officer should send a floppy disk that contains a current copy of the school's Manatee data files. Monthly Report, Local School Activity Funds This financial report shows the beginning balance, receipts, disbursements and ending balance for each activity fund account for the month. There is also a summary page that shows the total beginning balances, receipts, disbursements and ending balances by fund category and the placement of those funds in checking and savings accounts and in certificates of deposit. The total ending balance under "Summary of Accounts" should match the total fund balance under "Status of Funds". Approved-October 4, 2007 Effective-October 4, 2007 Page 7 of 9

Bank Reconciliation - Proof of Cash ARLINGTON PUBLIC SCHOOLS This financial report is a four-column proof of cash that indicates the school's checking account statement is reconciled with the activity fund ledger. Associated reports list deposits in transit, outstanding checks, and transfers and adjustments that affect the monthly totals. If the bank statement and the school's ledger reconcile perfectly, then the ending "Reconciled Balances" amount will match exactly the ending "Posted Balances per Books". (i.e. the intersection of the ending balance column and the "Unreconciled Items" row will contain a zero dollar amount). Annual Financial Report The annual financial report includes assets and liabilities arising from cash transactions, and the revenue collected and expenses paid during the fiscal year beginning July 1 and ending the following June 30. The annual report should include the following and be submitted to the Finance Department no later than July 31. Year-to-Date Report, Local School Activity Funds (from Manatee) Report of Accounts Receivable Inventory of Items Held for Resale Report of Accounts Payable In addition to the reports, the school finance officer shall submit to the Finance Department two sets of floppy disks containing the activity fund data from Manatee for the entire fiscal year. The finance officer shall also keep at least one set of data disks for the year and store them in a secure place. The school finance officer is expected to run the following reports from Manatee Accounting Software after closing the month of June but before closing the year. The reports shall cover the entire period from July 1 through June 30, except as noted, and shall be stored together with all other activity fund records for the fiscal year. Cash Receipts Journal Deposits Register Cash Disbursements Journal Transfers Journal Adjustments Journal Trial Balance as of June 30 General Ledger for all activity fund accounts (1-0100.00 through 6-0676.99) General Ledger for all cash accounts ($-0992.00 through $-0994.99) Year-to-Date Report, Local School Activity Funds. Approved-October 4, 2007 Effective-October 4, 2007 Page 8 of 9

Auditing of School Activity Funds School Activity Funds will be audited annually by a firm of certified public accountants in coordination with the Finance Department. An audit report will be issued to the principal, with a copy provided to the school finance officer and to the audit coordinator in Finance. A summary report will be issued to the Superintendent and the School Board, with copies provided to the Assistant Superintendent, Finance and Director, Finance. Finance Staff will perform spot audits of accounts or programs on an as needed basis and will provide technical assistance upon request. The Finance Department should be notified immediately concerning changes of personnel in either the principal's position or the school finance officer's position. Staff of the Finance Department will review monthly and annual reports submitted by the school finance officer to determine whether they appear to be correct and whether prescribed reporting procedures are being followed. Records Retention Schedule School Activity Fund records shall be retained in accordance with the "Financial Retention Schedule" in the School Activity Funds, Guidelines Issued by State Department of Education. Approved-October 4, 2007 Effective-October 4, 2007 Page 9 of 9